Processing Your Client’s

Tax Returns, Paper and

Electronic

BETTER
SERVICE

2003 IRS Nationwide Tax Forum

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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic
ELECTRONIC FILING
• Goal > 80% by 2007
• Social Security Administration (i.e. name,
number, date of birth)
• Direct computer input to facilitate quicker
processing
• Lower error rate
2003 IRS Nationwide Tax Forum
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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic

THE 1040
PAPER
PIPELINE

2003 IRS Nationwide Tax Forum

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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic
SUBMISSION PROCESSING

• Open and sort mail • Computer input

• Control and prepare • Resolve errors

documents

2003 IRS Nationwide Tax Forum

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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic
MOST COMMON ERRORS
•Mismatch SSN/Name (including dependents)
•Dependent on another return
•Earned Income Credit
•Child and Additional Child Tax Credit
•Signature
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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic

E-FILE 1040 PIPELINE

Shorter than the
Paper Pipeline

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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic
ELECTRONIC FILING

• E-File is the preferred method

• Proof of acceptance
• Faster refunds
• Accurate

2003 IRS Nationwide Tax Forum

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 Processing Your Client’s
Individual Tax Returns,
Paper and Electronic
Returns Processed Error Rates
• 80 Million Paper Returns 22 % of total filed
• 56 Million V Coded Returns
• 52.8 Million Electronic Returns < 1%
• IRS Internal Processing 16.2%
• Tax Practitioner Prepared 3.3%
Approximate Volumes

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 What Can You Do To Help
When Preparing the Return?

• Ensure the return is signed.

• Have all schedules and forms in the
correct order.
• Verify all SSN/EIN are correct.
• Verify eligibility and compute
correct Earned Income Tax Credit

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 What You Can Do To Help
When Mailing The Return?

• Only one tax return per envelope

• If no pre-printed labels are available –
research the IRS web (www.IRS.gov) site
or use Package X or Publication 17
• File in the correct location

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 FILING AND PAYING IN
THE CORRECT
LOCATIONS
• New realignment of the states
• New addresses
• Form 1040-V separate mail-out with
IRS Tax Forms
• Encourage the use of IRS Tax Forms

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 What You Can Do To Help
When Mailing Payments?
• Use the pre-printed vouchers.
• Use a separate check for each transaction.
• Make checks and money orders payable to
“United States Treasury”.
• Include SSN/EIN, tax period, and form
type on check.

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 Processing Your Client’s
Tax Returns, Paper and
Electronic

BETTER
SERVICE

2003 IRS Nationwide Tax Forum

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